Impacts of climate change on small and medium-sized enterprises in Pakistan

Abstract

This study aimed to investigate the small and medium-sized enterprises in developing countries like Pakistan, focusing on how extreme weather events such as floods, droughts and unpredictable temperatures impact their operational efficiency, financial stability and capacity for resilience. As these SMEs’ play a very important role in Pakistan’s economy, their vulnerability to climate related disruptions poses significant economic challenges. In this study a quantitative approach was adapted for data collection via questionnaires from SME owners across Pakistan to explore climate change impacts and SME performance. By assessing the current policies, such as the National Climate Change Policy 2021 and the SME Policy 2021, the study highlighted the gaps in policy implementation and coordination which make it difficult for SMEs’ to adapt. The findings aimed to help develop effective ways for SMEs’ to adapt, encourage sustainable practices and highlight the importance of targeted support to cope with climate challenges.